What is Venmo?
Venmo is a mobile payment platform that has been the life of financial parties since its launch in 2009 and, since 2013, has enjoyed the company of PayPal. This quirky app allows users in the U.S. to send and receive money with style, functioning not just as a platform for peer-to-peer (P2P) money transfers but also as a wallet for storing funds for later splurges. It’s like having your digital piggy bank – minus the need to break it open.
Diving into Cryptocurrency: Venmo’s Digital Assets
Not one to stay behind in the digital age, Venmo added cryptocurrency transactions in April 2021. You can now buy, sell, and hold digital coins like Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). The app even teases the future inclusion of PayPal’s USD stablecoin (PYUSD). It’s like being at a buffet and discovering the dessert table – who can resist?
How to Purchase Bitcoin with Venmo
Buying Bitcoin with Venmo is easier than convincing a toddler to eat a cookie. Here’s how:
- Open the Venmo app and tap on the “Crypto” tab.
- Select “Bitcoin (BTC)” from the list and check the current exchange price.
- Hit “Buy” and enter the dollar amount you wish to spend on BTC.
- Review the details, including fees and exchange rates, before tapping “Buy” again to complete the transaction.
Remember, purchasing crypto is a one-way street with Venmo. Once you buy that digital gold, there’s no turning back unless you sell it.
Tracking and Monitoring Your Bitcoin
Once you’ve successfully bought Bitcoin, you can track its fluctuations and historical prices right in the app. The display is as dynamic as a soap opera plot – changes happen frequently. The app updates prices in real-time, and you can view price changes over various periods (24 hours, a week, a month, and even the entire lifespan of BTC!).
Fees and Other Considerations
Like every good thing in life, buying Bitcoin comes with fees. Venmo charges a spread (estimated at 0.50%) based on market prices, plus a transaction fee. And if you think you can glide by with your credit card? Think again! Credit cards are a no-go for crypto purchases. Also, don’t forget about those sneaky bank fees that might rear their heads when you use a linked bank account or debit card.
Who Can Join the Bitcoin Party?
Before you get too excited, let’s talk eligibility. Anyone wanting to buy Bitcoin through Venmo needs to:
- Be at least 18 years old.
- Be physically in the U.S. (sorry, Hawaii, you’re on the sidelines).
- Have a unique U.S. cell phone number.
If you check all those boxes, it’s time to create your Venmo account and dive into the crypto fun.
Set Your Price Alerts
Don’t sleep on the market! Use Venmo’s Crypto Price Alerts to stay updated on Bitcoin price changes and make timely decisions. Just a couple of taps and you will receive notifications about daily percentage changes – but don’t forget to double-check before making moves!
Understanding the Risks
Buying Bitcoin isn’t without its pitfalls. Venmo doesn’t provide the sweet comfort of purchase protection for crypto transactions, meaning you could be left holding your proverbial bag if prices drop. Also, keep in mind that Venmo does not fall under the safety net of FDIC or SIPC protection – so don’t stash away your life savings there!
Conclusion
To sum it up, Venmo is an accessible way to engage in cryptocurrency, but not without its quirks and risks. Whether you’re just dabbling or diving deep into Bitcoin, ensure you stay informed and cautious. Remember, even though Venmo loves to keep things simple, the crypto world is anything but!
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